VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 3, 2013) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Polaris Minerals Corporation (the "Company") (TSX:PLS) announces that it has entered into an agreement with Dundee Securities Ltd. ("Dundee") who, together with GMP Securities L.P. (collectively, the "Underwriters"), has agreed to purchase, on a bought deal basis, 11,500,000 Common shares of the Company (each a "Common Share") at a price of $1.31 per share (the "Offering"). In addition, the Company has granted the Underwriters an over-allotment option to purchase up to an additional 1,725,000 Common Shares, exercisable at any time up to 30 days from the closing of the Offering at $1.31 per share (the "Option"). In the event that the Option is exercised in its entirety, the aggregate gross proceeds of the Offering will be approximately $17.3 million.
The Company plans to use the net proceeds from the Offering to repay in full the Company's outstanding Senior Secured Notes in the principal amount of $8.1 million carrying a 12% interest rate, to pursue the entry for its products into Southern California through the development of its leased site in the Port of Long Beach, and for general corporate purposes.
The Common Shares will be offered by way of a short form prospectus to be filed in all of the provinces of Canada, except Quebec, pursuant to National Instrument 44-101 - Short Form Prospectus Distributions and in the United States on a private placement basis pursuant to a exemptions from the registration requirements of the United States Securities Act of 1933, as amended.
The Offering is scheduled to close on or about June 25, 2013 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
The Company's statutory filings are available at www.sedar.com as well as the Company's website, www.polarmin.com.
Polaris Minerals Corporation is exclusively focused on the development of quarries and the production of construction aggregates in British Columbia for marine transport to urban markets on the Pacific coasts of North America to meet growing local supply deficits. In 2007, Polaris began shipping sand and gravel from the Orca Quarry to San Francisco Bay, Vancouver and Hawaii.